Should the ECB follow the Fed in adopting a dual mandate?
Current and former officials argue an expanded mandate could prove ineffective
The Federal Reserve’s policy review led it to adopt an average inflation target in August, and to say it will tolerate higher levels of employment.
The European Central Bank looks unlikely to follow this path, but current and former officials speaking at a recent conference weighed up whether the ECB should consider a Fed-style dual mandate.
Currently, the ECB only aims to secure price stability through its inflation target, while the Fed’s goals encompass both inflation and maximum
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